Comments: The one rung I couldn't strike improve very much with duration, so opted to let this rung go to assignment. I collected a total of 10.46 in credits (See Post Below), so the way I generally look at assignments is that the credits collected of10.46 ($1046) represent a realized gain. Unfortunately, the difference between the strike price (300.00) and...
... with a cost basis of 317.10/share. Comments: A continuation post to track my cost basis in shares that I will find in my account on Monday due to the June 24th 321 short put expiring in the money. Knowing that this was the likely outcome, I went ahead prior to assignment and sold a short call vertical against and then rolled it out to the September expiry...
Assignment 02, Analysis-06, Short Trade Plan for EURNZD. Only for learning purpose of Dow Theory
Comments: Although the shares haven't appeared in my account yet, they will be there by Monday, since MJ finished sub-18.00 at expiry. These started out as August 17th 18 short puts (See Post Below), for which I received a .49/contract credit, so my cost basis in the shares will be the strike price (18.00) minus the credit received (.49) or 17.51/share. Next...
This is a continuation of long-running trade that I kicked the can on. (See Post Below). With price finishing the day wayyy below my 10 short put, I will find shares in my account next week via assignment. In anticipation of that occurring, I previously sold a February 21st 5.5 call and have a cost basis of 5.22. I'm fine with being called away at 5.50 should...
One of the many wonderful things about trading short options is "assignment risk," particularly with naked shorts. (You're not subject to this risk if you're long; if you want the stock at your long strike, you have to "exercise" those options, which is a whole different animal). Being aware of this risk and planning for the possibility that you will be assigned...
Some time ago, I set up an X short straddle (11 short put/11 short call) on the notion that the underlying's volatility was going to collapse post-earnings and that it would quiet down and stay in a fairly narrow range long enough for me to get out of the setup at 25% max profit (which is about all I expect out of those; I just take the money and run). ...
With GPRO nearing its IPO low, I'm looking at an options play that results in my getting assigned the stock -- at the right price, of course. How do you get assigned stock? Basically, you sell a put, and if price is below the strike price of that put at expiration, you are assigned the stock. The converse of this is you sell a call; if price is above the strike...